ORGAN’S recent trading losses are an isolated incident and the bank is expected to be “solidly profitable” in the second quarter, chief executive Jamie Dimon will tell the US Senate Banking Committee today.
Dimon will tell the committee the bank feels terrible about the trading debacle, while emphasising the losses will only hurt shareholders, not taxpayers, and the bank maintains a “fortress balance sheet”, according to his prepared testimony.
“While we can never say we won't make mistakes – in fact, we know we will – we do believe this to be an isolated event,” Dimon will say according to his testimony released by the bank last night.
Last month, JP Morgan announced that a hedging strategy had gone awry and produced at least $2bn in unexpected trading losses.
Dimon in his prepared testimony did not provide an updated estimate for the losses.
Dimon is contrite in his testimony and says the bank did not have proper risk protections in place in the chief investment office where the losses occurred.